NERC Slams Charges On Customers Wishing To Dump DisCos

Unsatisfied customers who wish to dump electricity supply from the power distribution company (DisCos) will have to pay heavy charges known as Competition Transition Charge (CTC). The Nigerian Electricity Regulatory Commission (NERC,) which slammed the charges in its latest Eligible Customer Regulation, noted that the fees were payable by large power users before they can exit the services of the 11 distribution companies (DisCos). 

The Eligible Customer Regulation first enacted in 2017, checks by New Telegraph showed, allows unsatisfied power users to leave the supply of Dis- Cos and connect to power plants directly through the services of the Transmission Company of Nigeria (TCN). This move has, however, enraged members of the Manufacturers Association of Nigeria (MAN), who have now critiqued the payment.

MAN, it would be recalled, asked to become eligible customers (ECs) to evacuate the 2,000 megawatts stranded power taunted by generation companies (Gen- Cos). Like MAN, the National Coordinator of the Transparency Awareness Group (TANGO), Mallam Ibrahim Isah, in a letter, called on the Federal Government and the National Assembly to reverse this guideline as its members provided the power infrastructures to connect to dedicated transmission lines from GenCos without contribution from DisCos. 

The letter said they should not be made to pay extra charges by NERC. However, NERC’s latest guideline signed by the Chairman, Prof. James Momoh, said anyone opting out of a DisCo service must pay the Competition Transition Charge (CTC).

“The CTC is to be paid in addition to the transmission charges being paid to TCN, which is a custodian of the 132/33kVa dedicated transmission lines. They excluded the major stakeholders,” the guideline read. Meanwhile, the Rural Electrification Agency (REA) and the African Development Bank (AfDB) have proceeded with another phase of the Nigeria Electrification Project (NEP) worth $200 million to provide electricity to over 500,000 people across 105,000 households. The Minister of State, Power, Goddy Jeddy Agba, at the launch in Abuja, commended the AfDB for the partnership.

Citing the success story of Rokota Mini Grid in Niger State, which is executed by REA with World Bank funding in 2019, Agba said: “If we could have many of those things done across the country, we could have a lot to show in a very short time.” The Acting Vice President, Power Energy, Climate and Green growth Complex at AfDB, Wale Shonibare, said 80 million Nigerians lacked access to sustainable and affordable electricity. 

He said Nigeria needed to connect 500,000 to 800,000 households per year to achieve the electricity for all target by 2030 in line with the Sustainable Development Goals (SDGs). Shonibare said the African development finance institution would be providing the $200 million fund for REA to service four components that will provide solar hybrid power for 250 sites, among others. 

The Managing Director of REA, Ahmad Salihijo, said over the past two years, the agency had intensified the provision of electricity across communities, adding that REA was capitalizing on private sector investments to ensure that the 80m people have access to power.

Salihijo explained the components of the project to include solar hybrid mini grids ($70m), Energy-Efficient Appliances for Productive Use ($20m), phase three of the energizing education programme ($100m), and technical assistance and capacity building ($10m). 

He said the NEP-AfDB would contribute to “more than 500,000 Nigerians in 105,000 households in off-grid or underserved communities, having access to electricity.” The project also targets an increase of 76.5 megawatts (MW) power generation of which 68MW will be from solar generation alone.

It will connect 20,000 Micro, Small and Medium Enterprises (MSMEs), avoid 1.69m tons of carbon dioxide emissions while tackling climate change. Chairman of the REA Board, Umaru Maza Maza, assured of support for the agency, saying “the board of REA will do all within its power to achieve its mandate as spelt in the Electric Power Sector Reform Act 2005.”